The S&P/TSX Composite Index closed 167.50 points higher on Monday to 19,028.86 in a broad-based rally led by materials and energy.
Canadian Natural Resources Ltd., Canadian Pacific Railway Ltd. and Barrick Gold Corp. helped drive the Canadian benchmark higher. “Recession risk is certainly elevated. And I think what we're starting to see now is a lot of those economic revisions starting to come down. And we're also probably going to start to see a lot of the earnings revisions start to come down because earnings have actually stayed relatively optimistic up until recently,” said Craig Basinger, chief market strategist at Purpose Investments, in an interview on Monday.
“We're increasing U.S. a little bit, which had been underweight since the beginning of the year. We're actually raising bonds -- our weight in bonds -- from underweight to market weight. And again, a lot of that has to do with the more attractive yields that are available in the bond universe,” Basinger said.